Sun Pharmaceutical Earnings Summary — Q4 FY2026
Sun Pharmaceutical Navigates Sequential Margin Pressure Amidst Robust Revenue Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 4.7% sequentially in Q1 FY2027.
- Revenue of ₹15,300 Cr is 10.5% higher year-on-year.
- Revenue has compounded at 11.5% annualised over the last 10 quarters.
- Net profit of ₹2,895 Cr is 27.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 3.9% annualised across the period.
- Operating margin stands at 28.9% in Q1 FY2027.
- Operating margin compressed by 219 bps year-on-year.
- Over the last two years operating margin has expanded by 36 bps.
- PBT margin is 26.8%.
- Expenses grew 14.0% against revenue growth of 10.5%.
- Operating profit of ₹4,418 Cr is 2.7% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 69/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 15,300 | 14,612 | 15,521 | 14,478 | 13,851 | 12,959 | 13,675 | 13,291 | 12,653 | 11,983 |
| Expenses | Stable | 10,882 | 10,658 | 10,572 | 9,951 | 9,550 | 9,243 | 9,666 | 9,352 | 9,045 | 8,948 |
| Operating Profit | Improving | 4,418 | 3,954 | 4,948 | 4,527 | 4,302 | 3,716 | 4,009 | 3,939 | 3,608 | 3,035 |
| Operating Margin | Stable | 28.9% | 27.1% | 31.9% | 31.3% | 31.1% | 28.7% | 29.3% | 29.6% | 28.5% | 25.3% |
| Other Income | Volatile | 520 | 459 | 89 | 470 | -354 | 251 | 149 | 354 | 533 | 504 |
| Interest | Improving | 100 | 86 | 78 | 100 | 75 | 49 | 52 | 69 | 62 | 74 |
| Depreciation | Stable | 739 | 775 | 732 | 730 | 701 | 664 | 631 | 626 | 655 | 650 |
| Profit Before Tax | Improving | 4,099 | 3,551 | 4,227 | 4,168 | 3,173 | 3,254 | 3,476 | 3,598 | 3,424 | 2,816 |
| Tax | Volatile | 1,188 | 828 | 826 | 1,031 | 870 | 1,094 | 559 | 567 | 552 | 149 |
| Net Profit | Stable | 2,895 | 2,714 | 3,369 | 3,118 | 2,279 | 2,150 | 2,903 | 3,040 | 2,836 | 2,655 |
| Net Margin | Stable | 18.9% | 18.6% | 21.7% | 21.5% | 16.4% | 16.6% | 21.2% | 22.9% | 22.4% | 22.1% |
Key Takeaways
- Revenue grew 12.8% year-on-year to ₹14,612 Cr, demonstrating sustained demand for specialty and chronic portfolios.
- Operating Profit Margin (OPM) contracted to 27% from 32% in the previous quarter, driven by higher operating expenses which reached ₹10,658 Cr.
- Net Profit surged 25.8% annually to ₹2,710 Cr compared to Mar 2025, though it fell significantly from the Dec 2025 record of ₹3,381 Cr.
- Borrowings increased to ₹4,627 Cr by March 2026, nearly doubling from ₹2,362 Cr recorded in March 2025.
- The tax rate remained stable at 23% compared to the prior-year quarter, though profitability was aided by a spike in Other Income to ₹458 Cr.
- Sun Pharma maintains its status as India's largest domestic pharmaceutical player with an 8%+ market share.
- Specialty product contribution continues to stabilize overall margins compared to the volatile US generic commoditization cycle.
Management Guidance
Management remains focused on the specialty pivot across dermatology and ophthalmology, aiming to offset US generic pricing pressures through high-margin complex molecules.
Sentiment Shift
Deteriorating
While year-on-year growth remains strong, the sequential decline in revenue and the sharp 500 basis point drop in OPM since last quarter indicate near-term cost pressures.
Outlook
The outlook remains positive for long-term compounding as the specialty portfolio matures, though regulatory scrutiny of manufacturing facilities and R&D gestation periods present ongoing risks.
From the Annual Report (Key Quotes)
“Sun Pharma is evolving from a generic powerhouse to a global specialty player.”
“The shift toward specialty products has stabilized margins that were previously volatile.”
“Management has demonstrated foresight in moving away from the 'commodity generic' trap.”
Official Quarterly Documents
This summary is AI-generated from Sun Pharmaceutical's latest quarterly filing and earnings call. For informational purposes only — not investment advice.